Closing Costs On Your Fort Lauderdale Mortgage
In order to determine if someone’s fees are high or low and to compare apples to apples you need to know what you are looking at. I have certainly lost deals because someone thought my fees were too high or higher than another banks estimate but that in fact was not the case, my estimate was accurate and their’s was not.
My opinion is that you should not be choosing someone solely on their fees or rate. There is much more to a loan and if that is your main focus and concern your loan could be a nightmare or not close. No matter what product or service you are looking to pay for in life you can always find it cheaper but most times when you have savings you are giving something else up such as advice, expertise, honesty, quality, etc.
If you have a copy of the new “Good Faith Estimate” you would want to pay close attention to Box A at the bottom of page 1. That is the total loan origination fees charged by the institution originating the loan. The rest of the fees for the most part will depend on the title company being used, the number of days the mortgage professional is putting in for per diem interest, the estimated insurance, and the estimated taxes.
In Fort Lauderdale and South Florida I think it is best to estimate the property taxes at 2% of the purchase price although the tax rate will be dependent upon the seller’s current tax rate until the property gets reassessed based off of your purchase price along with a Homestead Exemption if it’s your primary residence.
Just be careful when it comes to shopping for a mortgage. You will most likely confuse yourself. I heard a saying once, “you shop for shoes, you shop for clothes, but when you shop for a mortgage you get stuck with the biggest liar.